How to Make Money on Shopify in 2021
Make Money with Shopify
It’s true – you can make money on Shopify. But how do you know which products to sell? What are the best ways to promote your store? How do you track all of this information so that you know where your business is going and what needs improvement? Hopefully, this blog post will answer each of these questions for you!
Shopify Business Ideas
1) Sell Through Your Own Store
If you are looking to make money through Shopify then the best way is to simply create your own store and sell your own products. Selling products is the most traditional way to make money with an e-commerce store. When it comes to selling products, you have several options.
A) Sell Your Own Products
This is something that most people who are starting an online business want to do, but it’s one of the least profitable ways to make money on your website. This is because you’re now the middleman between the product and your customer (or end-user), so you need to buy things wholesale (from merchants) and resell them retail – with a profit. This is something that can work well for you, but it’s important to keep in mind that the margins aren’t as good as other methods.
B) Resell Merchandise (dropshipping)
Resell Merchandise (dropshipping) is the process of selling merchandise from a different retailer as your own. The biggest attraction to dropshipping is that you don’t have to deal with inventory, shipments, or logistics. You’ll be posting products from other companies on your site and selling them for a profit. You’ll need a platform and tools to incorporate your site with the company you’re buying products from and tools to help promote and sell the product. Oberlo is a great resource to help you find success in this model.
C) Find Your Own Products (retail arbitrage)
This is an interesting idea because it involves buying products from big box stores and then reselling them for a profit on your website. The whole idea behind this is that you’re finding products that have a good margin (it costs you less to buy the product than what you sell it for), which means you can make money from both sales and referrals if someone finds your ecommerce store through Google or social media.
2) Affiliate Marketing (referral marketing, affiliate ads)
Let’s first understand what affiliate marketing is and how to make money doing it. Affiliate marketing is when you promote (or recommend) someone else’s product or service and earn a commission if you generate a sale. Sometimes affiliate marketing is called “performance-based marketing” because the compensation can be based on actual performance, not just a simple click. This method of generating income is one of the most popular ways of making money online. Why? Well, affiliate marketing is relatively easy to do. All you need to do is create some sort of media platform that people trust and then recommend or promote a product in an organic way. This can be done with a blog, website, social media channel (like Instagram), and/or email list.
The truth is that it takes time and dedication to grow an organic audience on whatever platform you choose. If you are selling something, it takes time to get people to buy. If you do not have a budget for paid marketing or sales activities, organic growth can be slow going in the beginning. But with a little bit of elbow grease and some strategic focus on your goals, you can generate a significant amount of income from affiliate marketing in a short period.
So how do you get started? Well, if you have a Shopify store then there are hundreds of affiliate programs that you can partner with to promote their products and services. The best part is that Shopify already has all the tools in place for you to use! So, create your website or media platform then start looking for affiliate programs that are a perfect fit.
3) Set up a Blog
Google loves websites with fresh content and this means that you can get inbound links quickly by simply writing blog posts. With a blog, you can also begin to monetize it through various methods such as Google Adsense, or the Shopify affiliate program. The only downside of this strategy is that it takes a lot of time and effort to get it right, produce unique content regularly, build your audience, etc. Monetizing traffic can be more appealing to those who are experienced or have an already successful blog with hundreds or thousands of loyal followers.
4) Sell Information
Another way to make money with Shopify is by selling information. This can be in the form of eBooks, courses on Udemy, or even data through paid surveys. The trick of selling information online is to not just sell it once. Create a relationship with your customer and give them value for money so that they become loyal followers who will buy from you time and time again. That style of the business model takes a lot of time, effort, and expertise but the rewards are huge.
Make Money in Ecommerce
Growing the traffic and the sales of your ecommerce business are core responsibilities to any success that you will achieve. These tips will help you do just that.
Tip 1: Find Profitable Products for your Shopify Store
Using Google Trends to find out what people are searching for is one of the simplest ways to find products that people are actively looking for. Google Trends will tell you what specific keywords are trending, and how much they have trended over time. To use Google Trends, just enter the keyword into the search bar at the top of the page. You can also choose a specific country or category for your search.
Another option is to use Google’s Autocomplete to find out what people are asking for. Go back to the Google Trends page, and instead of entering a keyword, enter a question. You will be presented with a list of possible questions people might be asking. Look for ones that are frequently asked – they are the ones you should consider targeting.
Tip 2: Promote your Store through Google Ads
The first tip is to promote your store through Google Ads. These ads will be displayed on the top and right-hand side of Google’s search results, and they’re an easy way to drive traffic (and sales) to your ecommerce business.
Tip 3: Promote your Store through Facebook Ads
Facebook advertising is an incredible and cost-effective way to gain exposure for your store. The best thing about Facebook ads is that they are highly targeted. You can target just about anything, from specific interests to job titles and even the areas people live in.
Tip 4: Build an Email List
A crucial part of ecommerce marketing is establishing relationships with your customers. If they trust you, they are more likely to purchase from you in the future. And this is where an email list comes into play!
Building a customer email list will allow you to establish these long-lasting relationships and keep your customers coming back for more and more and more. Plus the best part about an email list is that you truly own it. And even better, building an email list costs nothing but time!
Tip 5: Use Coupons
One extremely effective way to make more money with your Shopify store is to use coupons. There are many ways you can go about doing this but one of the easiest ways is to find a coupon generator that will provide you with coupons in bulk. With this, you can create your coupon, set the duration, and share it on Facebook, Twitter, or your email list so your followers can get in on the action too.
Tip 6: Implement Retargeting Ads
Retargeting ads are focused on bringing back lost site visitors. They are great for “brand awareness” and help visitors remember about your site by placing ads on different channels, such as Facebook or Google.
Tip 7: Influencer Marketing
Influencer marketing is when you pay an influencer to talk about your business. For example, if you sell women’s leggings, you can reach out to fitness celebrities and ask if they’ll mention your products! You can also achieve the same intended result by reaching out to bigger stores in the same niche and asking for shoutouts.
Tip 8: Use a Company Blog
Don’t have an ecommerce blog? You should think about creating one. A blog is a great way to show off your knowledge and authority in a particular area, such as fashion or fitness. This will bring you many new visitors, which will undoubtedly increase the number of people shopping on your site.
Tip 9: Focus on Stellar Customer Service
This one is so important but often overlooked. A lot of people start out thinking that the quality of their products will be what makes or breaks them. However, once you have a spectacular product, then it becomes about delivering that consistently every time with excellent customer service. There are two main components to this. First, make sure that you are very responsive to your customers. If someone has a question about their order they should be able to contact you at any time via live chat on your website or through email. This is important because even if your products are phenomenal people still want to be able to quickly get in touch with you for support during and after the purchase! Zendesk is an option to manage all of our support requests. Implementing a live chat feature into your website will be a big time saver and give you an edge over other ecommerce sites. Stellar customer service is so important when you are starting, to ensure sustained growth of your ecommerce business. Sometimes it can help to remember that you are not trying to make sales, you are providing a service and the product is just the medium of delivery.
Monitoring Your Shopify Store’s Performance
When it comes to tracking the performance of your Shopify store, there are 3 main factors that you must consider, which are, monitoring your sales, traffic, and conversion rates. Meticulous tracking of these core stats will be the key to knowing what is working and what is not within your store’s ecosystem.
Shopify comes with a default tracking system that can be used to monitor e-commerce transactions within Shopify itself. However, when it comes to your other sales channels it becomes a little difficult to track sales.
As an e-commerce business, you would want to know about your online and offline sales performance on various platforms such as Facebook, Twitter, Pinterest, etc. Shopify has come up with a solution called Shopify Sales channel integration for this purpose. With this feature, you can track your sales across various online channels.
To be able to monitor the performance of your Shopify store, you need to install a monitoring tool that can help you see how many people visit your site and what they do while they are there. A great recommendation for this is Google Analytics. By using Google Analytics, you can get information like where your visitors come from (countries), what devices (iPad, iPhone, Android phone or tablet) and browsers they use (Chrome, Safari, Firefox, etc.) to visit your store, what pages they visited and how long on average they stay on your site.
To be able to monitor this data you need first of all to install the Google Analytics tracking code onto your Shopify store. Normally this is already pre-installed on a new Shopify store. If your website is already live you can install the tracking code yourself from the Google Analytics Dashboard. After installing the code, you have to connect it with your Google Account and select your Shopify store from a list of all websites linked to it. Once that is done, you will start seeing performance data collected by Google Analytics directly in the “Acquisition” section of your Shopify store.
3) Conversion Rates
Conversions are statistical measurements of the activities that lead to sales on your Shopify ecommerce store. A conversion could be a sale, email signup, or any other activity you want to track. Shopify has built-in reporting tools to measure conversions. The reports are accessible from within your store admin. Google Analytics is another brilliant resource to track certain website statistics. You can monitor traffic sources, audience demographics and get a better understanding of the way people interact with your store. Google Analytics conversion tracking feature allows you to see where your customers are clicking on your site and how they got there, which pages they viewed before purchase, etc.
Shopify is a great way to start your ecommerce business. If you are looking for ways to make money on Shopify, the first step is understanding how your business will generate revenue. With your ecommerce store, you must have a plan in place before diving into development. The second step should be figuring out what type of products you want to sell and deciding if they’re physical goods or digital items. Once these two steps are complete, your Shopify journey can begin!